Middle East Paper Co. (1202) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Middle East Paper Co.

Why is Middle East Paper Co. ?

Poor Management Efficiency with a low ROCE of 7.92%

The company has been able to generate a Return on Capital Employed (avg) of 7.92% signifying low profitability per unit of total capital (equity and debt)

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 9.92% and Operating profit at -144.22% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 9.24% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 9.92% and Operating profit at -144.22% over the last 5 years

ROCE(HY) Highest at -1.2%
OPERATING PROFIT(Q) Highest at SAR 46.02 MM
PRE-TAX PROFIT(Q) Highest at SAR 16.6 MM

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -47.07%, its profits have risen by 49.3%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Middle East Paper Co. should be less than 10%
Overall Portfolio exposure to Paper, Forest & Jute Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Paper, Forest & Jute Products)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Middle East Paper Co. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Middle East Paper Co.

-48.08%

-1.64

33.03%

Saudi Arabia All Share TASI

-11.13%

-0.71

15.65%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.92%

EBIT Growth (5y)

-144.22%

EBIT to Interest (avg)

6.37

Debt to EBITDA (avg)

1.35

Net Debt to Equity (avg)

0.09

Sales to Capital Employed (avg)

0.47

Tax Ratio

49.79%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

7.92%

ROE (avg)

9.24%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

1.46

EV to EBIT

-168.12

EV to EBITDA

23.10

EV to Capital Employed

1.43

EV to Sales

2.25

PEG Ratio

Dividend Yield

ROCE (Latest)

-0.85%

ROE (Latest)

-2.23%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

Bullish

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

21What is working for the Company

ROCE(HY)

Highest at -1.2%

OPERATING PROFIT(Q)

Highest at SAR 46.02 MM

PRE-TAX PROFIT(Q)

Highest at SAR 16.6 MM

NET PROFIT(Q)

Highest at SAR 14.31 MM

EPS(Q)

Highest at SAR 0.17

-1What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 29.15% (YoY

Here's what is working for Middle East Paper Co.

Pre-Tax Profit

At SAR 16.6 MM has Grown at 426.82%

over average net sales of the previous four periods of SAR -5.08 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (SAR MM)

Net Profit

At SAR 14.31 MM has Grown at 256.44%

over average net sales of the previous four periods of SAR -9.15 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (SAR MM)

Operating Profit

Highest at SAR 46.02 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (SAR MM)

Pre-Tax Profit

Highest at SAR 16.6 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (SAR MM)

Net Profit

Highest at SAR 14.31 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (SAR MM)

EPS

Highest at SAR 0.17

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (SAR)

Here's what is not working for Middle East Paper Co.

Raw Material Cost

Grown by 29.15% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales